Johnson & Johnson (NYSE:JNJ) Stock Price Up 2% – What’s Next?

Johnson & Johnson (NYSE:JNJ) shares traded up 2% during mid-day trading on Monday. The stock traded as high as $282.73 and last traded at $281.8640. 6,897,281 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 7,970,804 shares. The stock had previously closed at $276.22.

Key Johnson & Johnson News

These are some of the JNJ news items that stood out recently:

• Positive Sentiment: J&J reported a second positive Phase 3 study of CAPLYTA for bipolar I mania. The drug improved symptoms versus placebo, with benefits appearing as early as Day 3; the company plans to use the two successful trials to support a U.S. FDA submission. The results could broaden CAPLYTA’s market opportunity, subject to regulatory approval. Reuters article
• Negative Sentiment: A Massachusetts jury awarded $3.3 million, including interest, to the family of a woman who developed mesothelioma after using J&J talc-based baby powder. While this is one verdict, it renews attention on the company’s talc litigation exposure. Business Wire article
• Negative Sentiment: Valuation commentary notes that JNJ’s strong multiyear share-price gains may leave less room for upside if future cash flows do not justify the current valuation. Yahoo Finance article

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on JNJ shares. Leerink Partners dropped their target price on Johnson & Johnson from $276.00 to $272.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 14th. Raymond James Financial set a $280.00 price target on shares of Johnson & Johnson in a research note on Monday, August 3rd. Argus set a $300.00 price objective on shares of Johnson & Johnson in a research report on Wednesday, July 29th. Wall Street Zen downgraded shares of Johnson & Johnson from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Guggenheim reiterated a “buy” rating and issued a $287.00 price target on shares of Johnson & Johnson in a research note on Wednesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $275.92.

Johnson & Johnson Price Performance

The company’s 50-day moving average is $266.49 and its two-hundred day moving average is $248.93. The firm has a market cap of $675.29 billion, a P/E ratio of 42.50, a PEG ratio of 2.79 and a beta of 0.22. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.02 and a quick ratio of 0.74.

Johnson & Johnson (NYSE:JNJ) last posted its earnings results on Tuesday, October 13th. The company reported $2.59 earnings per share for the quarter, topping analysts’ consensus estimates of $2.53 by $0.06. The firm had revenue of $25.40 billion for the quarter, compared to analysts’ expectations of $25.38 billion. Johnson & Johnson had a net margin of 16.20% and a return on equity of 31.64%. The company’s revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.80 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS. Sell-side analysts anticipate that Johnson & Johnson will post 11.12 EPS for the current fiscal year.

Johnson & Johnson Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be given a $1.34 dividend. This represents a $5.36 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Tuesday, November 24th. Johnson & Johnson’s payout ratio is 81.21%.

Insider Buying and Selling at Johnson & Johnson

In related news, EVP Timothy Schmid sold 33,597 shares of the business’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $274.74, for a total value of $9,230,439.78. Following the transaction, the executive vice president owned 25,447 shares in the company, valued at $6,991,308.78. The trade was a 56.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Jennifer Taubert sold 15,000 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the transaction, the executive vice president owned 194,451 shares in the company, valued at $51,210,615.36. The trade was a 7.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.16% of the company’s stock.

Institutional Trading of Johnson & Johnson

A number of institutional investors and hedge funds have recently modified their holdings of JNJ. Wellington Management Group LLP grew its position in shares of Johnson & Johnson by 12.5% in the second quarter. Wellington Management Group LLP now owns 22,588,696 shares of the company’s stock valued at $5,736,851,000 after purchasing an additional 2,513,321 shares in the last quarter. Deutsche Bank AG lifted its holdings in Johnson & Johnson by 8.5% during the 2nd quarter. Deutsche Bank AG now owns 15,661,323 shares of the company’s stock worth $3,977,506,000 after purchasing an additional 1,225,676 shares in the last quarter. Fisher Asset Management LLC boosted its stake in Johnson & Johnson by 11.5% in the 3rd quarter. Fisher Asset Management LLC now owns 14,837,126 shares of the company’s stock worth $3,927,981,000 after purchasing an additional 1,530,070 shares during the period. Amundi boosted its stake in Johnson & Johnson by 17.5% in the 1st quarter. Amundi now owns 13,406,820 shares of the company’s stock worth $3,277,163,000 after purchasing an additional 2,001,139 shares during the period. Finally, Jupiter Topco LLC purchased a new position in Johnson & Johnson during the 2nd quarter valued at about $1,967,399,000. 69.55% of the stock is owned by hedge funds and other institutional investors.

Johnson & Johnson Company Profile

Johnson & Johnson is a global healthcare company that develops and sells prescription medicines and medical technologies. Its business is organized around two segments: Innovative Medicine and MedTech. Innovative Medicine develops treatments in areas including oncology, immunology, neuroscience, cardiovascular and metabolic disease, and pulmonary hypertension. MedTech provides products and technologies for fields such as surgery, orthopedics, and vision care. Founded in 1886, Johnson & Johnson serves patients and healthcare professionals in markets around the world.